Are you qualified?
When I ask if someone is qualified to buy a new home, most people think I am referring to their mortgage qualification.
I am not.
While mortgage qualification is always a concern, the even larger concern in my mind, is whether or not a buyer is qualified to BUILD the home.
Huh?
Building a new home (or more correctly spoken, having one built for you) is hard work. It is time consuming. It is frustrating. It is confusing. It is emotional. It brings out the worst in many people. It brings a level of uncertainty and uneasiness to your everyday life. It adds a layer of stress and work on top of our already stressful and overworked lives. It is tough.
When buyers begin to talk about ‘maybe we should just build a new home,’ I will ask them what makes them qualified to build one. The following answers do not count:
“My friends just did”
“Well we go to a lot of open houses and we know what we want.”
“We live in a house now and we know what we need.”
“My parents did it a few times and they can help.”
“My (father/mother/cousin/aunt) is an engineer.”
If these are the reasons you think you are qualified to build a home….don’t do it. You are far from qualified.
First and foremost, you need to understand what you are trying to accomplish. If there is a particular need that is unique to your situation, then maybe building is the only way you can get what you need. Examples would be health issues or family issues or even work issues. The need for ADA compliance or an extra bath for a parent that may live with you or an expanded home office all could be needs that are not easily addressed in the resale market.
Another good reason for building is if you work for a builder and get the “I work for a builder” discount. If you can buy the home at a wholesale price, it is not a bad idea.
Sometimes, the area in which you wish to live may dictate that you build. If a new school is the draw and there is not a existing inventory of homes to choose from, building may be your only option. Likewise, rural areas usually have lower inventories and older homes. Buying a piece of land and building a home, may be the only way to get what you truly need.
With those exceptions, make sure that if you wish to build a home, you are doing it for the right reasons. It is a tough process and a time consuming one. Make sure you are ready.
